Question

Please explain how the Balanced Scorecard can be used to assist a company in executing its strategy.

Answer 1

Yes, it is true that balanced scorecard is used to assist a company in executing its strategy.

Balanced scorecard is used due to followings major benefits in executing its strategy;

1. Balance scorecard provides a framework to align everyone in the organization for reaching to mission & vision of the organization hence use of balance scorecard will result into executing its strategy in much better way so that ultimate objectives of the organization can be attained effectively.

2. As we know that execution of the strategy mostly depend on the strategy communication because without efficient communication we can not expect for executing its strategy. In case of balanced scorecard we will have precise & understandable goals & plans to be executed, thus a company can communicated these to their employees in much easier way.

Hence we can say that balanced scorecard can be used to assist a company in executing its strategy.

3. With the help of balanced scorecard, a company can continuously control & monitor its’ execution of strategy of the company. Hece any loopholes & deficiencies can be identified by the management in real time and ultimately it will help in much better execution of strategy in the future course of action.

So as a result we can say that due to precise list & image of plans & mission, vision and effective communication, we can use balanced scorecard in executing strategy of the company.